What to Consider When Buying an Annuity

They are getting more popular, but choosing the right one can be tricky

Annuity providers have tried to simplify products but it can still be hard to compare them.Alex Nabaum

By

Bailey McCann

Feb. 3, 2019 10:08 p.m. ET

Annuities are getting more popular now that interest rates are going up and a large portion of baby boomers are looking for a smart way to manage retirement savings.

According to data from the Limra Secure Retirement Institute, overall annuity sales through the third quarter of 2018 were $170 billion, up 11% from the same period a year earlier. Full-year data aren’t out yet, but based on the most-recent estimates, Limra SRI expects 2018 individual annuity sales will be north of $230 billion, up from $204 billion in 2017.